Dominion Net Metering Changes Are Here: What the SCC’s Final Order Means for Homeowners

On April 30th, at around 4:30 pm, the Virginia State Corporation Commission officially issued its final order on Dominion Energy’s net metering program. This is an initial read of the order, and while we expect more clarity as implementation unfolds, we thought it was important to get accurate information out quickly so homeowners can understand what is changing and what it means for them.

The Big Picture

The SCC has approved a new structure known as “NEM 2.0” for future solar customers. At the same time, existing solar customers are protected under the current program.

This is not a removal of net metering, but it is a meaningful shift in how solar energy is valued and how credits are handled over time.

What Is Changing

For homeowners who go solar after the new rules take effect, there are two major changes.

1. Exported Energy Is Worth Less Than Before

Excess solar energy will no longer be credited at the full retail rate. Instead, it will be compensated based on the utility’s avoided cost.

The SCC set that export value at approximately $0.058 per kilowatt hour*. For context, most homeowners pay around $0.12 to $0.14 per kilowatt hour for energy, before additional riders and fees that make up the total electric bill. That is also the value captured when solar energy is produced and used directly in the home.

Solar energy used in your home still offsets your bill at the full retail rate.
Solar energy sent back to the grid is worth significantly less than it is today.

2. The Netting Structure Is Changing

This is the part that is often overlooked.

Under the current program, solar customers benefit from annual netting. Excess energy produced in the summer can be carried forward and used to offset higher usage in the winter.

Under the new structure, Dominion proposed a full shift to real-time billing, but the SCC rejected that approach*.

However, they did approve a move toward more granular measurement, using shorter time intervals rather than relying solely on annual netting.

In practical terms, this means:

• Credits will be evaluated more frequently

• The ability to “bank” large amounts of excess energy over long periods will be reduced; system design and real-time usage will matter more than before.

• The system is moving away from long-term energy banking and toward a structure that better reflects when energy is produced and used.

What Is Not Changing

The underlying electric rates themselves are not changing as part of this order.

More importantly, current solar customers are not being forced into the new structure. The SCC made it clear that anyone interconnected before the effective date can remain on the existing program.

That means:

• Existing systems keep annual netting

• Existing systems keep retail rate offsets

• Existing systems are not required to switch

Why the SCC Made This Change

The Commission’s reasoning centers around avoided cost.

They determined that electricity sent back to the grid should be compensated based on what it actually saves the utility, not the full retail price.

At the same time, they acknowledged that solar provides real benefits to the grid and the broader economy, including reduced fuel use, improved reliability, and positive economic impact across the state.

The result is a middle-ground approach that continues to support solar while adjusting how excess energy is valued.

Timeline: When Do These Changes Take Effect

The new structure does not begin immediately.

Dominion has up to 90 days from the order to file updated tariffs that reflect these changes. After that, there is a review and implementation process.

Based on typical timelines, the new program is expected to take effect in late summer or early fall of 2026.

To be grandfathered into the current net metering structure, a system must be fully interconnected before the new tariffs go into effect.

Not signed
Not installed
Interconnected

Here Is the Full Order

For those who would like to review the full ruling directly, you can access the State Corporation Commission’s final order here:

https://www.scc.virginia.gov/docketsearch/DOCS/8bxb01!.PDF

What This Means for Homeowners

Solar still makes sense under both structures. The fundamentals have not changed.

However, the value of timing has increased.

Homeowners who go solar before the new program takes effect are able to lock in:

• Annual netting

• Full retail rate offsets

• More flexibility in how energy is used across seasons

Homeowners who wait will still benefit from solar, but under a structure that places more emphasis on using energy as it is produced.

Final Thoughts

This ruling represents an evolution of solar policy in Virginia, not an elimination of it.

We will continue to monitor how Dominion implements these changes and provide updates as more details become available. As with any regulatory shift, the full impact will become clearer over time.

In the meantime, homeowners who are considering solar now have a clearer picture of what is coming and a limited window to take advantage of the current structure before changes take effect.